Vietnam Airlines And Boeing Set To Ink $7.5 Billion Jet Deal

Vietnam Airlines is expected to sign an initial agreement to purchase approximately 50 Boeing 737 Max jets in a deal valued at around $7.5 billion, according to a source familiar with the negotiations.

The deal's estimated value is based on list prices and could potentially be lower due to bulk purchases, as companies often receive discounts. I Photo: Vietnam Airlines Facebook

This information was reported by Francesco Guarascio and Tim Hepher of Reuters.

The wording of the impending deal, which confirms a Reuters report from the previous week, coincides with US President Joe Biden's visit to Hanoi, where he aims to strengthen ties with the former adversary.

The deal's estimated value is based on list prices and could potentially be lower due to bulk purchases, as companies often receive discounts. Boeing has an existing agreement with Vietnam Airlines' competitor, VietJet, for the purchase of 200 of its 737 MAX aircraft.

In 2022, Vietnam was the world's fifth fastest-growing aviation market when it lifted COVID-19 travel restrictions, as reported by the International Air Transport Association (IATA).

The IATA predicts that by 2035, Vietnam will serve 150 million air transport passengers. Boeing 737 Max jets had been grounded globally for several months after two fatal crashes occurred in Indonesia and Ethiopia in 2018 and 2019.

These planes returned to service towards the end of 2020. In the second quarter of this year, Vietnam Airlines reported a net loss of 1.3 trillion dong ($53.96 million), marking its 14th consecutive quarter in the red.

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